A lot of trading now is done by algorithms. How much are we seeing these biases, human biases, play out in aggregate market decisions? We'll make no mistake that the agarithms know about human biases and they take them into account. But it's very unlikely that an algorithm is going to hold a position for more than a few utes or a day.
#388: Recessions are terrifying.
Market crashes often bring out the worst in people’s anxieties and fears.
This fear triggers us to act even more irrationally than usual – which can lead to making expensive mistakes in our investment portfolios.
In today’s episode, Scott Nations, who spent his career studying market volatility, describes some of the most common cognitive biases and irrational behaviors that investors make. He shares tips on how to master the mental game of investing, especially in turbulent times.
For more information, visit the show notes at https://affordanything.com/episode388
Learn more about your ad choices. Visit podcastchoices.com/adchoices